KB Asset Management Launches KB US-China AI Tech Target Maturity Fund No. 3

KB Asset Management announced on October 20 that it will launch an additional target maturity fund investing in artificial intelligence (AI) technology companies in the United States and China.

The KB US-China AI Tech Target Maturity Fund No. 3 aims to achieve profitability by investing in the US and Chinese AI value chains, while also ensuring stability by allocating assets to high-quality domestic bonds. The portfolio is structured with approximately 50% equities and 50% bonds.

The target return is 7%. When the cumulative return for Class A reaches the target, all equity-related assets will be sold, and the fund will be converted into a bond fund of funds, primarily investing in domestic bond assets. This is a follow-up to the KB US-China AI Tech Target Maturity Fund No. 1 and No. 2, both of which achieved their target returns early.

KB US-China AI Tech Target Maturity Fund No. 3 balances the growth potential of the AI industry in the world’s two leading technology powerhouses by investing simultaneously in the United States, which has strong AI-based technology competitiveness, and China, which is rapidly advancing in applied technologies.

According to global market research firm Fortune Business Insights, the physical AI market-including humanoid robots and autonomous vehicles-is expected to grow more than fivefold by 2032.

To proactively respond to structural changes in the industry, KB Asset Management has constructed a portfolio that encompasses both AI-based technologies (such as semiconductors, cloud computing, and AI software) and applied industries (such as robotics, autonomous driving, and smart manufacturing).

Key investment targets include US companies such as Alphabet, Tesla, Nvidia, Palantir, and Meta Platforms, as well as Chinese companies like Xiaomi, Tencent, and Alibaba.

The remaining 50% is invested in short-term bond exchange-traded funds (ETFs) and money market funds (MMFs) that focus on high-quality domestic bonds, thereby diversifying risk and seeking stable interest income.

Yook Donghwi, Head of Pension WM Division at KB Asset Management, introduced the KB US-China AI Tech Target Maturity Fund No. 3 as "an efficient product that seeks profitability by investing in US and Chinese AI innovation companies, while also pursuing stability through investment in high-quality domestic bonds." He added, "Since the fund is converted into a bond fund of funds upon achieving the target return, it is also suitable for pension investors seeking stable returns."

This content was produced with the assistance of AI translation services.